Rupee snaps 3-day losing streak, settles 11 paise higher at 72.51 against US dollar

Mumbai, March 26 (PTI): The rupee snapped its three-day losing streak and closed 11 paise higher at 72.51 (provisional) against the US dollar on Friday, supported by positive domestic equities and weakening of the American currency in the overseas market.

At the interbank forex market, the local unit opened at 72.51 against the greenback and witnessed an intra-day high of 72.37 and a low of 72.53.

It finally ended at 72.51, registering a rise of 11 paise over its previous closing. On Thursday, the rupee had settled at 72.62.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 per cent to 92.71.

“Next week is a truncated week with currency holidays, so we can expect market participation to be muted. At this point forex market is trying to get some more global news that will be the next catalyst.

“So, unless any nation stops the vaccine rollout, the rapid vaccination drive by the US will keep the risk appetite higher,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

However, lockdown in Europe and upbeat US data will limit any fall in USD-INR spot. Thus, we expect the spot to trade within 72.20-72.80, Gupta added.

Brent crude futures, the global oil benchmark, rose 2.10 per cent to USD 63.25 per barrel.

On the domestic equity market front, the BSE Sensex ended 568.38 points or 1.17 per cent higher at 49,008.50, while the broader NSE Nifty advanced 182.40 points or 1.27 per cent to 14,507.30.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 3,383.60 crore on Thursday, according to exchange data.